STX Heavy Industries Eyes Capital Increase

South Korean STX Heavy Industries has decided to launch a new capital increase scheme that will involve share offering and debt to equity conversion.

The offering will see a total of 171, 495 of common stock issued at KRW 25,000 per share.

The new shares are expected to be listed on February 1, 2018, the company said in a regulatory filing.

STX Heavy Industries, which specializes in the design, manufacturing, and selling of diesel engines and other equipment for ships, went into court receivership in August 2016.

The company suffered a major financial blow due to the shipbuilding industry slump.

The engine manufacturer’s prospects worsened even further when its parent STX Offshore & Shipbuilding went into court receivership in 2016. The parent company accounted for the bulk of the company’s sales.